What is multi-tenancy?

Multi-tenancy, originally a term for a specific software architecture, has evolved to describe various ways software or its architecture can be divided into manageable parts to enhance efficiency, cost-effectiveness, and security. In the context of SaaS applications, multi-tenancy often involves isolating resources for different customers, while global enterprises might implement it by region to accommodate local variations in content, language, and legal requirements. The business model, like serving multiple locations, can also determine multi-tenancy, as seen in retail chains or hospitals, with each location acting as a tenant. Additionally, legal or process requirements may necessitate delivering software to customers’ own hosting solutions, such as government agencies or sensitive industries, leading to further multi-tenancy scenarios. These scenarios often overlap, reflecting the increasing complexity of software development, which continuously blurs the distinctions between different multi-tenancy approaches.